Andrew Mathieson
GEELONG’S biggest car dealer yesterday declared its franchises safe from a Ford decision to stop financing car buyers.
Ford Credit Australia announced the car company’s leading lender would no longer provide loans for retail sales after the end of next month.
The finance company, which will cut 80 per cent of its workforce in Melbourne, would only provide wholesale credit to dealerships for car lots.
The company told Ford car dealers, including Geelong’s Rex Gorell, about cutbacks at a meeting at Melbourne Airport on Wednesday.
Mr Gorell, who has two showrooms and sells 13 car brands, said the announcement would only hurt dealers who exclusively sold Fords and Ford Credit finance.
“Even though we do deal with Ford Credit, we have other facilities in place, so therefore it doesn’t affect us,” Mr Gorell said.
Some Ford dealers expected to close unless they could find new finance for their floor stock.
Mr Gorell said the proportion of Ford Credit loans changed “from month to month” at his franchise.
Mr Gorell said his company had to trade with other lenders as well as Ford Credit to cover all the 13 brands under his umbrella, including Volvo, Mazda and Land Rover.
His dealership would continue to sell Fords despite the latest grim news for the company.
“Ford is still a big part of our business and I believe it always will be,” he said.
“It has just recently made commitments in Geelong, with an investment of over $20 million.
“Ford Credit is only small arm of Ford Motor Company.”
Ford spokesperson Sinead McAlary believed the credit flop would not hurt car sales.
Ford Credit financed only 10 per cent of the company’s retail sales among more than 100,000 cars sold last year, she said.
“The key for us is they (Ford Credit) continue to providing wholesale financing for our dealer network, which is the cars that dealers have on their lots,” Ms McAlary said.
“They have confirmed they will continue wholesale financing. That was really most important to us.”
Melbourne media reported that a source in finance believed the loans withdrawl was a “precursor” to Ford Credit pulling out of wholesale finance.